跳过导航
Who Needs Bonds Anyway?
Article

Who Needs Bonds Anyway?

They don’t pay much interest, and future price appreciation is so not happening. Still, they have their uses.



Editorial Rating

8

Qualities

  • Analytical
  • Overview
  • Background

Recommendation

Low interest rates have become the new normal since the Great Recession, and central bankers have signaled their intention to keep rates low for a long time to come. Negative-yielding debt around the world exceeded $17 trillion in November 2020, yet investors flocked to bonds for safety during the COVID-19 pandemic. With interest rates at rock bottom, investors can no longer depend on sovereign and high-quality fixed-income instruments for returns. Financial journalist Larry Light looks at what the future holds for bonds in this informative report.

Take-Aways

  • The US Federal Reserve’s low interest rate posture has contributed to falling bond yields in the credit markets.
  • Bonds continue to serve an important role as safe assets during times of financial distress.
  • Investors can still find returns in fixed-income securities.

About the Author

Larry Light is the markets editor at Chief Investment Officer magazine. 


Comment on this summary or 开始讨论